A Change in the Price of a Good ________ Its

question 172

Multiple Choice

A change in the price of a good ________ its supply curve and ________ a movement along its supply curve.

• A) shifts; causes
• B) shifts; does not cause
• C) does not shift; causes
• D) does not shift; does not cause
• E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.

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Definitions:

Accrual Basis

A financial recording strategy where income and costs are documented at the point they are generated or incurred, irrespective of the timing of cash transactions.

Accounting Principles

The standardized guidelines and rules that govern financial accounting and reporting practices.

External Decision Makers

Individuals or entities outside a company, such as investors or creditors, who use the company's financial information to make decisions.

Rent Receivable

An asset account representing the amount of rent that has been earned but not yet collected by the landlord.